The document provides information on preparing cost estimations and evaluating project profitability. It discusses inputs like the work breakdown structure and resource requirements that are used to prepare cost estimations. Tools like analogous estimating, parametric modeling, and bottom-up estimating are described for developing cost estimates. Outputs include the cost estimates themselves and supporting details. Methods for evaluating project profitability discussed are payback period, average annual rate of return, net present value, and internal rate of return. Factors like cash flows, investment costs, and discount rates are considered in these calculations to determine whether a project is profitable.
Role of production planning and control in operation managementRiya Sunny
Planning and Control are very important for success of an operation unit. For effective operation in a manufacturing unit, it is essential to integrate the production ...
The Master Production Schedule (MPS) is a plan for the production of individual final items. The MPS breaks down the production plan to show, in each period, the quantity to produce of each final article.
#masterproduction #mps #mrp #erp #manufacturing #manufacturingsoftware #erpsoftware #mrpeasy
Manufacturing planning and control systems
Chapter 4
1.Capacity Planning
2.CAPACITY PLANNING'S ROLE IN MPC SYSTEMS.
3.CAPACITY PLANNING AND CONTROL TECHNIQUES.
4.MANAGEMENT AND CAPACITY PLANNING.
5.DATA BASE REQUIREMENTS.
Role of production planning and control in operation managementRiya Sunny
Planning and Control are very important for success of an operation unit. For effective operation in a manufacturing unit, it is essential to integrate the production ...
The Master Production Schedule (MPS) is a plan for the production of individual final items. The MPS breaks down the production plan to show, in each period, the quantity to produce of each final article.
#masterproduction #mps #mrp #erp #manufacturing #manufacturingsoftware #erpsoftware #mrpeasy
Manufacturing planning and control systems
Chapter 4
1.Capacity Planning
2.CAPACITY PLANNING'S ROLE IN MPC SYSTEMS.
3.CAPACITY PLANNING AND CONTROL TECHNIQUES.
4.MANAGEMENT AND CAPACITY PLANNING.
5.DATA BASE REQUIREMENTS.
In this presentation, we will discuss material planning systems and its evolution. Overview on MRP processes, its objectives and types of demands. We will also talk about the various terminologies like bills of material, inventory record, operating logics, MRP explosion process, capacity requirement planning.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Material Resource Planning (MRP)
Objectives of MRP
Fundamental concepts of MRP
Functions of MRP
Inputs to MRP
Master production schedule(MPS)
Bill of Materials (BOM)
Inventory Status File
MRP outputs
Learning Curve
Negotiating
Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq
A brief introduction on various concepts of Project Cost, covering various types of Project Costs, Processes to be followed for developing project budget, project budget components, contingency and management reserves, earned value management
3rd Forum on Construction Project Management Theory VS Practice (Project Cost) :-
1. PMBOK - Project Management Knowledge Areas and Process Group
2. Project Life-cycle
3. Project Cost
4. Project Appraisals
5. Financial Analysis
6. Total Cost of Ownership (TCO)
In this presentation, we will discuss material planning systems and its evolution. Overview on MRP processes, its objectives and types of demands. We will also talk about the various terminologies like bills of material, inventory record, operating logics, MRP explosion process, capacity requirement planning.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Material Resource Planning (MRP)
Objectives of MRP
Fundamental concepts of MRP
Functions of MRP
Inputs to MRP
Master production schedule(MPS)
Bill of Materials (BOM)
Inventory Status File
MRP outputs
Learning Curve
Negotiating
Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq
A brief introduction on various concepts of Project Cost, covering various types of Project Costs, Processes to be followed for developing project budget, project budget components, contingency and management reserves, earned value management
3rd Forum on Construction Project Management Theory VS Practice (Project Cost) :-
1. PMBOK - Project Management Knowledge Areas and Process Group
2. Project Life-cycle
3. Project Cost
4. Project Appraisals
5. Financial Analysis
6. Total Cost of Ownership (TCO)
The main aim of this research study was to investigate the causes of illegal migrationn and its impacts in the
returnees who are living in Woliso town. To achieve these objectives, qualitative methods and Semi-structured in
depth interviews were held with a total of 25 women participants. Descriptive phenomenology was the approach
employed for conducting this study. The purposive sampling technique was used to select 25 returnees of illegal
emigrant f The Primary information was collected mainly from the migrants, Labour
and Social affairs office. Phenomenological method of analysis for study was used to analyze the data obtained
from the participants. The findings of the study revealed that there are a variety of contributory factors that led to
the emergence of migrant women from Ethiopia to Middle East countries. The result showed that the major factors
contributing to the migration and vulnerability of Ethiopian women to illegal emigration are lack of employment,
poverty, lack of prospects, the search for better opportunities and income to support themselves and their families
and economic insecurity as the probable cause of this migration.
Project cost management ,cost estimation cost control and evm for large epc projects and is essential for knowing the cost parameters for all construction engineers.
This presentation covers the two processes that fall under the Initiating Process Group
1. Develop Project charter
2. Identify Stakeholders
Additionally, it covers the ITTO of the processes
Chapter 09 of ICT Project Management based on IOE Engineering syllabus. This chapter mainly focuses on cost and project, cost management, cost estimating and more related to cost and project. Provided by Project Management Sir of KU
Attempt has been made to demonstrate on how to add customized images to the background and logo in login screen of Active Workspace.
The following links are useful for your practice. However this may differ on how you named installation directory and its associated folders.
Path for logo & ssobackground images: C:\SOFT\Teamcenter13\TR\aws2\stage\repo\tc-aw-framework\src_native\assets\images
Path for kt.json file: C:\SOFT\Teamcenter13\TR\aws2\stage\src\solution
Path for TC command to execute the modifications: C:\SOFT\Teamcenter13\TR\aws2\stage
"Happy learning!!!!"
Shoot your questions to: somu.mechie@gmail.com
This presentation is intended to enable the sales team about the capabilities of NX CAM.
It covers fundamentals of machining, types of CNC Machining and Advanced capabilities of NX CAM
This document is intended to my personal reference when delivering training.
I thankful to Siemens Digital Industries Software.
This document is incomplete. Will update in sometime.
This document provides SOP to install Siemens Capital software in both server and client systems.
Capital is a comprehensive software suite that enables the engineering of E/E systems for large platforms such as cars, aircraft, and sophisticated machines.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
2. Introduction
• Estimate costs is the process of developing an approximation of the monetary
resources needed to complete project activities.
• The key benefit of this process is that it determines the amount of cost required to
complete project work.
• Cost estimates should be reviewed and refined during the course of project to
reflect additional detail as it becomes available & assumptions are tested.
For ex: a project in the initiation phase may have rough order of magnitude
estimate in the range of +25% to +75%. Later the project has more information is
known, definitive estimates could narrow the range of accuracy -5% to +10%.
• The techniques for estimating the cost involved in performing each of the project
activities are the same as estimating the time required.
• When a project is formed under contract, care should be taken to distinguish cost
estimating from pricing.
• Cost estimating includes identifying and considering various costing alternatives.
4. Preparing Cost Estimation: Inputs
• Work breakdown structure: A WBS is a deliverable-oriented grouping of
project components that organizes and defines the total scope of the project;
work not in the WBS is outside of the project.
It is used to organize cost estimates and to ensure that all identified work
has been estimated.
• Resource requirements: The resource planning process is a description of
what types of resources are required and in what quantities for each element
at the lowest level of the WBS.
Resource requirements for higher levels within the WBS can be calculated
based on the lowest level values.
5. Preparing Cost Estimation: Inputs
• Resource rates: The individual or group preparing the estimates must know
the unit rates for each resource to calculate the project costs.
If actual rates are not known, the rates themselves may have to be estimated.
• Activity duration estimates: Activity duration estimating is the process of
taking information on project scope and resources and then developing
durations for input to schedules.
It will affect cost estimates on project, where the project budget includes
allowance for the cost of financing.
• Chart of accounts: A chart of accounts describes the coding structure used
by the performing organization to financial information in its general ledger.
Project cost estimates must be assigned to the correct accounting category.
6. Preparing Cost Estimation: Inputs
• Historical information: Information on the cost of many categories of
resources is often available from one or more of the following sources.
Project files
Commercial-cost estimating databases
Project team knowledge
• Estimating publications: Commercially available data on cost estimating.
• Risks: The project team considers information on risks when procuring cost
estimates, since risks can have a significant impact on cost.
The project team considers the extent to which the effect risk is included
in the cost estimates for each activity.
7. Preparing Cost Estimation: Tools and Techniques
• Analogous estimating: Analogous estimating, means using the actual cost of
a previous, similar project as the basis for estimating the cost of the current
project.
It is frequently used to estimate total project costs when there is a limited
amount of detailed information about the project
Analogous estimating is generally less costly than other techniques, but it is
also generally less accurate.
It is most reliable when,
a) the previous projects are similar in fact and not just in appearance, and
b) the individuals or groups preparing the estimates have the needed
expertise.
8. Preparing Cost Estimation: Tools and Techniques
• Parametric modelling: Parametric modelling involves using project
characteristics (parameters) in a mathematical model to predict project
costs.
Models may be simple or complex.
Both the cost and accuracy of parametric models vary widely
They are most likely to be reliable when
a) the historical information used to develop the model was accurate,
b) the parameters
c) the model is scalable
9. Preparing Cost Estimation: Tools and Techniques
• Bottom-up estimating: It involves estimating the cost of individual
activities or work packages, then summarizing the individual estimates to get
a project total cost.
The cost and accuracy of bottom-up estimating is driven by the size and
complexity of the individual activity or work package.
• Computerized tools: Computerized tools, such as project management
software spreadsheets and simulation/statistical tools are widely used to
assist with cost estimating.
Such products can simplify the use of the tools and thereby facilitate rapid
consideration of many costing alternatives.
• Other cost estimating methods: For example, vendor bid analysis.
10. Preparing Cost Estimation: Outputs
• Cost estimates: Cost estimates are quantitative assessments of the likely costs of
the resources required to complete project activities. They may be presented in
summary or detail.
Costs must be estimated for all resources that will be charged to the project.
Cost estimates are generally expressed in units of currency (dollars, euros, yen
etc.) to facilitate comparisons both within and across projects.
In some cases, the estimator may use units of measure to estimate cost
Cost estimating generally include considering appropriate risk response
planning, such as contingency plans.
Cost estimated may benefit from being refined during the course of the project to
reflect the additional detail available.
The Association for the Advancement of Cost Engineering (AACE) International has
identified a progression five type estimates of construction costs during engineering
order magnitude, conceptual, preliminary, definitive, and control.
11. Preparing Cost Estimation: Outputs
• Supporting detail: Supporting detail for the cost estimates should include:
A description of the scope of work estimated. This is often provided by a
reference to the WBS.
Documentation of the basis for the estimate, i.e., how it as developed.
Documentation of any assumptions made.
An indication of the range of possible results; for example, Rs 10,000 ± Rs
1000 to indicate that item is expected to cost between Rs 9000 and Rs 11000.
• Cost management plan: The cost management plan describes how cost
variances will be managed.
A cost management plan may be formal or informal, highly detailed or
broadly framed, based on the needs of the project stake holders
13. Introduction
• Profit is an excess of revenues over associated expenses for an activity over a
period of time.
• Every business should earn sufficient profits to survive and grow over a long
period of time.
• Profitability means ability to make profit from all the business activities of
an organization, company, firm, or an enterprise.
• Profit refers to the total income earned by the enterprise during the specified
period of time, while profitability refers to the operating efficiency of the
enterprise.
• It shows how efficiently the management can make profit by using all the
resources available in the market.
• Profitability is an index of efficiency; and is regarded as a measure of
efficiency and management guide to greater efficiency.
14. Methods of profitability evaluation
1. Pay Back Period (PBP) Method
2. Average Annual Rate of Return (AARR)
3. Net Present Value (NPV)
4. Internal Rate of Return (ARR)
15. Payback Period
• The payback period method is concerned with the recoupment (return) of
the original investment made in a project.
• It lays emphasis on calculating the length of time it would take to recover the
original investment.
• It involves calculation of the cash flows which would arise from investment
in each year of the life of a project.
• These cash flows are accumulated year by year till the time they equal the
amount of the original investment made in the project.
• The length of time it takes to obtain the necessary cash flows equal to the
original investment, determines the payback period for the project.
16. • For example, if a project requires an annual investment of Rs. 25,000 crores
and is expected to generate an annual cash inflow of Rs. 5,000 crores for 10
years, the payback period can be calculated as under;
Solution: Pay Back Period (PBP) = Initial Investment/Annual, Cash Inflow
or P = C/A1
Where, P = Pay Back Period;
С = Initial Investment or the cost of capital project; and
A1 = Annual Cash Inflow
P = 25,000/5,000 = 5
Thus, the PBP of this project is 5 years
17. Payback Period: Acceptance/Rejectance
• PBP is used as a criterion to accept or reject an investment proposal.
• PBP calculated for a proposal is to be compared with some predetermined
target period.
• If PBP is less than the target period, the proposal may be accepted.
• If PBP is more than the target period, the proposal may be rejected.
• By this method, proposals may be ranked.
• The lower the PBP, the more profitable the projects proposal.
18. Average Annual Rate of Return (AARR):
• This method is based on the accounting concept of return on investment or
rate of return.
• It refers to the percentage of the annual net income earned on the average
funds invested in a project.
• The annual return of a project is the percentage of net investment in the
project.
19. Average Annual Rate of Return (AARR):
• Example: , if average annual return of a project is Rs. 10,000 while the initial
cost of project is Rs.1, 00, 000, the annual rate of return will be as under:
• Solution:
AARR= 10,000/1,00,000 x 100
Thus, the average rate of return is 10%.
Acceptance/Rejection: AARR is compared with the cut off or the pre-
determined rate of return. If AARR is more than the pre-determined rate of
return, the project will be accepted otherwise rejected.
20. Net Present Value Method (NPV)
• It is also called as present value method.
• Net present value is calculated by using an appropriate rate of interest which
is the capital cost of a firm.
• This is the minimum rate of expected return likely to be earned by the firm
on investment proposals.
• To find out the present value of cash flows expected in future periods, all the
cash outflows and cash inflows are discounted at the above rate.
• Net present value is the difference between total present value of cash
outflows and total present value of cash inflows occurring in periods over the
entire life of the project.
• When the net present value is positive, the investment proposal is profitable
and worth selecting.
21. Net Present Value Method (NPV)
• NPV = Present value of Gross Earnings – Net Cash Investment NPV can be
found out from the following formula:
NPV= A1/(1+ r)1 + A2/ (1 + r)2 + A3 (1 + r)3 + …..An/ (1+r)n – C
Where A1, A2, A3 etc. are the cash inflows at the end of first, second and third
year respectively
n = Expected life of investment proposals;
r = Rate of discount which is equal to the cost of capital;
С = Present value of costs.
• Thus, NPV = Sum of Discounted Gross Earnings – Sum of Discounted Value
of Cost
22. Net Present Value Method (NPV)
• For example, if the initial investment cost of a project is Rs.100 crores, cash inflow in
the coming years is Rs.125 crores and the market rate of interest is 10% p.a., NPV will
be as follows:
Solution: NPV = 125/ (1 + 0.10)1 – 100
= 125 x 10/11-100
= 113.64-100=13.64
• Accept or Rejectance:
The decision criterion relating to NPV may be as under:
(a) If NPV > 0, the project is profitable.
(b) If NPV < 0, the project will not be profitable.
(c) If NPV = 0, the project may or may not be started.
If the decision is to be taken between two projects, the project with high positive NPV
would be selected rather than the other